BEUC Exposes Cryptosocial Media Scam in New Report

The European Consumer Organization (BEUC), an umbrella group of 46 independent consumer organizations from 32 countries, issued a report titled “Hype or harm?” on June 8.

The Great Cryptosocial Media Scam.” In the 20-page report, the group asserts that consumers do not understand cryptocurrency’s dangers.

According to the report, Instagram, YouTube, Twitter, and TikTok are “key players” in crypto advertising.

Facebook notes that crypto advertisements circumvent regulations prohibiting the propagation of unlicensed financial platforms. The announcement stated:

“TikTok, Instagram, Twitter & YouTube are responsible for allowing misleading advertisements of crypto to multiply through ads & influencers. This is an unfair commercial practice, exposing consumers to serious harm (loss of significant amounts of money).“

Regarding Twitter, the report references Elon Musk’s decision to use Doge, the mascot for Dogecoin, despite the platform’s ban on crypto advertisements.

Additionally, the BEUC identifies so-called “finfluencers” as “an important source of information” for younger audiences.

Despite the efforts of national regulators to counteract deceptive advertising, the issue still lacks a comprehensive solution.

According to the report, the Unfair Commercial Practices Directive and the Consumer Protection Cooperation Network (CPCN) already exist as the legal basis for European Union-level action, and the CPCN serves as the enforcement body.

The report calls for the CPCN to request that social media platforms implement stricter advertising policies, including a prohibition on influencers promoting crypto products, and to report to the European Commission on the effectiveness of the measures taken.

In the meantime, the French Senate authorized an amendment permitting registered cryptocurrency companies to employ social media influencers for advertising and promotional purposes.